The municipality had already approved the construction of 2,610 housing units in Givat Hamatos, which is located between the neighborhoods of Talpiot, Beit Safafa and Gilo, and another plan to build an additional 1,400 housing units is currently awaiting final approval.

On Monday, the city submitted its plans for the hotel rooms to the Planning and Building Committee. The rooms are to be built in an existing delapidated building, Israel Radio said.

Palestinian sources said approval of the project undermined the government’s claims of being committed to a viable two-state solution.